Dutch bank faulted for lax money-laundering enforcement

The Treasury Department and the Federal Reserve said ABN
ABN, -4.76%
had "systemic defects" in internal controls at its banks to combat money laundering.

ABN also participated in transactions that violated U.S. economic-sanctions laws, the U.S. Treasury and the Fed said.

The charges involve the North American clearing center at the bank's New York branch. Since 1998 that New York branch had marketed services to small and midsized Russian financial institutions. The center eventually processed about 30,000 fund transfers per day, according to the regulators. But the bank's failure to put in place an anti-money-laundering program resulted in "extensive violations" of U.S. requirements to report suspicious activity.

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